In the spirit of the season, the ins and outs of giving shares of stock

Cynthia Kett, a certified financial planner and CPA, says “giving” shares to children who are not adults by law is tricky. “Children under the age of majority can’t hold shares in their own name because they lack legal capacity to [enter into a] contract,” says Ms. Kett, a trust and estate practitioner with Stewart & Kett Financial Advisors Inc. in Toronto.

A better idea may be to allow minor children to “play” the stock market with pretend money before receiving the real deal once they reach the age of majority. Some companies offer “virtual” shares or portfolios online, Ms. Kett says. “The learning experience would still be of value, even though actual shareholdings aren’t at stake.”